Arbitrage
Re: Arbitrage
Is that trading currencies?
What are the discrepancies?
What are the discrepancies?
- Jackolantern
- Posts: 10893
- Joined: Wed Jul 01, 2009 11:00 pm
Re: Arbitrage
Be careful with that stuff. No idea what you are showing me, but I know a lot of these exploits and loopholes are simply plugged up with laws to nail people who exploit them
The indelible lord of tl;dr
Re: Arbitrage
Depends. I don't know if I'm reading the numbers right, but if it's fractions of a cent each time, the rate you get by chasing them up might not be enough that they'd bother with a law.
Re: Arbitrage
A discrepancy exists between things which ought to be the same; it can be small but is usually significant. A disparity is a large difference between measurable things such as age, rank, or wagesCallan S. wrote:Is that trading currencies?
What are the discrepancies?
-- http://www.thefreedictionary.com/discrepancy
Multiply it by a few thousands and it makes a huge difference.Callan S. wrote:Depends. I don't know if I'm reading the numbers right, but if it's fractions of a cent each time, the rate you get by chasing them up might not be enough that they'd bother with a law.
Arbitrage is not illegal.
http://en.wikipedia.org/wiki/Arbitrage
There is still a small risk involved. And that is the time it takes to send the order request from your computer to the markets computer. You have to hope you were first (internet connection speed).
Most markets use a transaction fee to try hold a balance, this formula is not as real as the arbitrage formula. Basically, markets should arbitrage themselves, which would be considered inside trading. The fact that they can't, means you can.
Fighting for peace is declaring war on war. If you want peace be peaceful.
- Jackolantern
- Posts: 10893
- Joined: Wed Jul 01, 2009 11:00 pm
Re: Arbitrage
Ohhhh, I have heard about this. People in the US have bought buildings right next to the market gateway servers so they could beat other people's requests
The indelible lord of tl;dr
Re: Arbitrage
Well, I've got crap internet, but how do you do this magic, Chris?
Re: Arbitrage
Jackolantern wrote:Ohhhh, I have heard about this. People in the US have bought buildings right next to the market gateway servers so they could beat other people's requests
Lol, you serious?
- Jackolantern
- Posts: 10893
- Joined: Wed Jul 01, 2009 11:00 pm
Re: Arbitrage
Absolutely. It is actually becoming a major problem in the US (according to some; others see it as fair game). Millions of dollars are being invested to try to shave a single millisecond off of requests to the stock market gateways. You want to be the first request when a discrepancy between markets appears, because the first arbitragers jumping on it could erase any potential profits for others.Sim wrote:Jackolantern wrote:Ohhhh, I have heard about this. People in the US have bought buildings right next to the market gateway servers so they could beat other people's requests
Lol, you serious?
This is just a piece of the iceberg for how the stock market works today. In the US, the stock market is mainly a battle between trading firm programmers to decipher other trading firm's algorithms and then beat or exploit them.
The indelible lord of tl;dr
Re: Arbitrage
Fighting for peace is declaring war on war. If you want peace be peaceful.